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IT'S been a long time in the making, but Mario Mercorella is one step closer to his dream.

Over a year ago, the Capricorn Coast businessman had a vision to transform the Rosslyn Bay kiosk and service station, owned by his family, into an impressive accommodation and tourist facility.

"(The idea) started last year in July but this time we decided to go for it," Mr Mercorella said.

The proposed development was approved by Rockhampton Regional Council on Wednesday and Mr Mercorella couldn't be happier.

"Bill Ludwig rang me and gave me the news," he said.

"It's just the beginning."

The plans for the site, located on Vin E Jones Memorial Drive and Shoreline Close, include a five-storey building with 40 residential units consisting of a mix of two, three and four-bedroom units as well as an arts and craft centre, restaurants, shops and basement parking.

Cr Bill Ludwig said it would certainly value-add to the existing developments at Rosslyn Bay, with the features of the facility to be welcomed by both tourists and locals.

"The bottom line is these things are good for our community," Cr Ludwig said.

Mr Mercorella, who has been in the area for 25 years, said he thought the change would be a great opportunity for the coast community.

"We'll give it our best," he said.

Cr Ludwig said it was great to see a family business looking to the future.

"Any assistance or facilitation we can provide, we will.

"Tourism nationally and especially in Queensland needs every shot in the arm it can get at the moment.

"To see people investing in a new product is great and for council to encourage that is absolutely vital."